Core Viewpoint - Borr Drilling Limited is set to present its fourth quarter 2025 results on February 19, 2026, via a webcast and conference call, indicating ongoing communication with stakeholders regarding financial performance [1]. Group 1: Presentation Details - The presentation will take place at 09:00 New York time (15:00 CET) on February 19, 2026 [1]. - Participants can access the presentation through a webcast link or by registering for a conference call [1]. - A replay of the webcast will be available after the live call [1]. Group 2: Contact Information - Questions regarding the presentation can be directed to Magnus Vaaler, CFO, at +44 1224 289208 [1].

Financial Data and Key Metrics Changes - The company recorded adjusted EBITDA of $126 million for Q4 2025, compared to $121 million in Q4 2024, reflecting a year-over-year increase [4] - A net loss of $42 million was reported, which included non-cash charges of $67 million for decommissioning drilling rigs and $17 million for drill pipe, while net income would have been positive $42 million without these charges [5] - The net debt to adjusted EBITDA ratio ended the year at 1.2 times, with a reduction in debt by CAD 101 million [2][13] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 66 active rigs, an increase of 1 rig from Q4 2024, with daily operating margins reported at CAD 14,132, down from CAD 14,559 in Q4 2024 [5] - In the U.S., the average active rig count was 37, an increase of three rigs from the prior year, with daily operating margins of $8,754, slightly up from $8,700 in Q3 [7] - The CMP segment reported adjusted EBITDA of CAD 17 million, compared to CAD 16 million in Q4 2024, driven by increased well servicing demand in Canada [8] Market Data and Key Metrics Changes - Internationally, the company averaged seven active rigs, down from eight in the prior year, with international day rates averaging $53,505, an 8% increase from Q4 2024 [7][8] - The Canadian market outlook remains solid with supportive commodity prices and resilient demand for Super Series rigs, while the U.S. market outlook is generally flat with pockets of opportunity for performance differentiation [20] Company Strategy and Development Direction - The company aims to drive revenue growth and deepen customer relationships, focusing on performance and efficiency across various North American basins [16][18] - The strategy includes leveraging technology and digital platforms to optimize drilling and enhance customer communication, with a focus on capital-light initiatives [19] - The company plans to continue its long-term deleveraging journey while increasing free cash flow allocated to shareholders up to 50% [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market's medium to long-term outlook, citing strong takeaway capacity and deep resource inventories [20][54] - In the U.S., while the industry outlook is flat, the company expects to capture modest growth driven by performance differentiation and customer efficiency [20] - The company is exploring international growth opportunities, including a memorandum of understanding (MOU) in Argentina to provide idle rigs and digital technology [22][45] Other Important Information - Capital expenditures for 2025 were CAD 263 million, with CAD 156 million for sustaining and infrastructure and CAD 107 million for upgrades [9] - The company expects to incur $2 million in one-time charges related to rig reactivations in Q1 2026 [10] Q&A Session Summary Question: Context around the rig demobilization in Kuwait - The company has six rigs in Kuwait, with four active and two idle, looking for opportunities to deploy the idle rigs [26][27] Question: Potential upside in the U.S. market - Management indicated that growth opportunities are being driven by performance and efficiency discussions with customers across various basins [34] Question: Guidance on U.S. margin for Q1 - The expected margin range is $8,000-$9,000 per day, with mixed pricing trends across operating segments [40][41] Question: Details on the MOU in Argentina - The MOU aims to explore opportunities in Argentina with an established partner, focusing on performance and technology while reducing market risks [45] Question: Impact of customer changes on Canadian demand - Management noted no broad change in demand despite individual customer adjustments, maintaining a peak activity of 87 rigs in the winter drilling season [54]

Financial Data and Key Metrics Changes - Precision Drilling reported adjusted EBITDA of $126 million for Q4 2025, compared to $121 million in Q4 2024, reflecting a year-over-year increase [4] - The company recorded a net loss of $42 million in Q4 2025, which included non-cash charges of $67 million for decommissioning drilling rigs and $17 million for drill pipe, while net income would have been positive $42 million without these charges [5] - The net debt to adjusted EBITDA ratio improved to 1.2 times, with a reduction in debt by CAD 101 million during the year [2][13] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 66 active rigs, an increase of 1 rig from Q4 2024, with daily operating margins reported at CAD 14,132, down from CAD 14,559 in Q4 2024 [5] - In the U.S., the average active rig count was 37, an increase of three rigs from the prior year, with daily operating margins of $8,754, slightly up from $8,700 in Q3 2025 [6] - The CMP segment reported adjusted EBITDA of CAD 17 million, up from CAD 16 million in the prior year, driven by increased well servicing demand in Canada [8] Market Data and Key Metrics Changes - Internationally, Precision averaged seven active rigs, down from eight in the prior year, with international day rates averaging $53,505, an 8% increase from the previous year [6][7] - The Canadian market outlook remains solid, supported by commodity prices and increased LNG and crude takeaway capacity, while the U.S. market is expected to remain flat with pockets of growth [20] Company Strategy and Development Direction - The company aims to drive revenue growth and deepen customer relationships, focusing on performance and efficiency to differentiate itself in the market [15][19] - Precision is investing in rig upgrades and digital technologies to enhance operational performance and customer service [18] - The company is exploring international growth opportunities, including a memorandum of understanding (MOU) in Argentina to provide idle rigs and digital technology [21][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market's medium to long-term outlook, despite short-term volatility due to weather and commodity prices [20] - The U.S. market is expected to remain flat, but there are opportunities for modest growth driven by performance differentiation [20] - The company plans to continue its focus on financial discipline and shareholder returns, with a target to increase free cash flow allocated to shareholders up to 50% [12][60] Other Important Information - Capital expenditures for 2025 were CAD 263 million, with CAD 156 million for sustaining and infrastructure and CAD 107 million for upgrades [9] - The company expects to incur $2 million in one-time charges related to rig reactivations in Q1 2026 [10] Q&A Session Summary Question: Context around the rig demobilization in Kuwait - Precision has six rigs in Kuwait, with four active and two idle, looking for opportunities to reactivate the idle rigs [25][26] Question: Potential upside in the U.S. rig count - Management indicated that growth opportunities in the U.S. are driven by performance and efficiency, with active discussions in multiple basins [31][32] Question: Guidance on U.S. margins for Q1 - The guidance for U.S. margins is $8,000-$9,000 per day, with mixed pricing trends across operating segments [38][39] Question: Details on the MOU in Argentina - The MOU aims to explore opportunities in Argentina with an established partner, focusing on performance and technology [42][43] Question: Impact of customer changes on Canadian demand - Management noted no significant change in demand despite individual customer adjustments, with strong activity levels in the Canadian market [50][51] Question: Rig upgrade capital allocation - A portion of the $63 million earmarked for upgrades is committed, with opportunities identified in Canada and the U.S. [62][64]

Financial Data and Key Metrics Changes - Adjusted EBITDA for the first fiscal quarter reached $230 million, exceeding expectations, driven by strong performance in North America Solutions and Offshore Solutions segments [6][25] - Revenues for the quarter were $1 billion, marking the third consecutive quarter at this level [25] - The company reported a net loss of $0.98 per diluted share, impacted by a non-cash impairment charge and unusual non-cash items totaling $103 million [25] Business Line Data and Key Metrics Changes - North America Solutions averaged 143 rigs working, with direct margin of $239 million, above guidance, driven by a higher rig count and gross margin of over $18,000 per day [7][27] - International Solutions ended the quarter with 59 rigs working, generating approximately $29 million in direct margins, exceeding guidance due to lower-than-expected reactivation costs [27][28] - Offshore Solutions generated a direct margin of approximately $31 million, with 3 active rigs and 33 management contracts, providing stable cash flow [28] Market Data and Key Metrics Changes - North America is expected to remain the most restrained market, with a decline in rig demand and operators adjusting activity levels [16][14] - International markets show resilience, particularly in the Middle East, with rig reactivations in Saudi Arabia indicating growing momentum [15][18] - The outlook for gas markets is robust, driven by demand for LNG and AI-led power needs, contrasting with softer oil-related investments [13] Company Strategy and Development Direction - The company aims to maintain pricing discipline, make selective capital investments, and capitalize on market cycles [15] - Focus on innovation and technology, particularly with the FlexRobotics initiative, to enhance rig safety and operational performance [8][20] - The new CEO emphasizes international growth, maintaining leadership in North America, and optimizing enterprise operations [58][61] Management's Comments on Operating Environment and Future Outlook - Management believes that global energy demand will continue to grow, supporting the need for drilling solutions [12][13] - The company anticipates gradual improvement in activity levels throughout the year, with a positive outlook for the second half of fiscal 2026 [16][35] - Management acknowledges the lumpiness in margins due to timing differences in reactivation costs but remains optimistic about future performance [33][35] Other Important Information - The company has made significant progress in deleveraging, paying off $260 million of its $400 million term loan ahead of schedule [24][25] - Cash flow generation for the quarter was strong at $126 million, funding dividends and debt repayment [26][31] - The company is committed to maintaining its base dividend as a core commitment to shareholders [31] Q&A Session Questions and Answers Question: Can you dimension the size of the startup costs in fiscal 2Q and will there still be some reactivation costs continuing into fiscal 3Q? - Management confirmed that reactivation costs anticipated in Q1 have moved to Q2, with some continuing into Q3, but the majority will occur in Q2 [44][46] Question: How should we think about profitability when all these FlexRigs are fully ramped up? - Management expects annualized EBITDA of roughly $5 million per rig from the reactivated rigs in Saudi Arabia, with direct margins for International Solutions segment expected to exceed $45 million per quarter once fully operational [76][79] Question: Are you still seeing some bad actors in terms of pricing in North America? - Management noted that while some operators are disciplined, others are more sensitive to commodity prices, but they remain committed to maintaining direct margins of 45%-50% [86]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2026 was $230 million, exceeding expectations, driven by strong performance in North America Solutions and Offshore Solutions segments [6][24] - Revenues reached $1 billion, marking the third consecutive quarter at this level [24] - The company reported a net loss of $0.98 per diluted share, impacted by a non-cash impairment charge and unusual non-cash items totaling $103 million [24] Business Line Data and Key Metrics Changes - North America Solutions averaged 143 rigs working, with direct margins of $239 million, above guidance [25][26] - International Solutions ended the quarter with 59 rigs, generating approximately $29 million in direct margins, exceeding guidance [26] - Offshore Solutions achieved a direct margin of approximately $31 million, with 3 active rigs and 33 management contracts [27] Market Data and Key Metrics Changes - North America Solutions rig count declined by 4% from the previous quarter, with expectations to average between 132 and 138 active rigs in Q2 [14] - International markets showed resilience, particularly in the Middle East, with rig reactivations in Saudi Arabia contributing to growth [13][17] - The outlook for gas markets remains robust, driven by LNG demand and AI-related power needs [12] Company Strategy and Development Direction - The company aims to maintain pricing discipline, make selective capital investments, and capitalize on market cycle improvements [13] - Focus on innovation and technology, particularly with the FlexRobotics initiative, to enhance operational safety and efficiency [20] - Commitment to deleveraging and maintaining investment-grade status, with a goal to pay down the term loan ahead of schedule [28][60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the energy landscape, anticipating gradual improvement in activity levels throughout the year [12][14] - The company expects to see a material step-up in international solutions margins as reactivations progress [51][79] - Management highlighted the importance of fiscal discipline and maintaining a strong balance sheet for future growth [60] Other Important Information - The company has made significant progress in deleveraging, having paid off $260 million of its $400 million term loan [23][28] - The FlexRobotics system has been successfully deployed, enhancing operational performance and safety [20] - The company is exploring geothermal opportunities in Europe and North America, with multiple contract awards [18][66] Q&A Session Summary Question: Can you dimension the size of startup costs in fiscal Q2 and the impact on margins? - Management indicated that reactivation costs anticipated in Q1 have shifted to Q2, with some continuing into Q3, but they remain optimistic about the overall guidance [44][46] Question: What is the vision for H&P moving forward? - The new CEO emphasized international growth, maintaining leadership in North America, and focusing on technology innovations as key components of the company's future strategy [55][58] Question: How should profitability be viewed with the ramp-up of FlexRigs and reactivations in Saudi? - Management expects annualized EBITDA of approximately $5 million per rig from the reactivations, with margins expected to stabilize and improve as operations ramp up [74][78]

Core Insights - Unit Corporation (UNTC) did not declare a special dividend in late 2025 after selling its drilling division, which disappointed some investors but ensures the sustainability of its current quarterly dividend of $1.25 per share [2]. Company Overview - Unit Corporation's decision not to issue a special dividend follows the sale of its drilling division, indicating a strategic focus on maintaining a stable dividend for shareholders [2]. Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is a top-rated analyst on TipRanks. He co-founded a mobile gaming company that was acquired by PENN Entertainment and has expertise in designing economic models for mobile apps [2].

Core Insights - Unit Corporation (UNTC) did not declare a special dividend in late 2025 after selling its drilling division, which disappointed some investors but ensures the sustainability of its current quarterly dividend of $1.25 per share [2] Company Overview - Unit Corporation's decision not to issue a special dividend follows the sale of its drilling division, indicating a strategic focus on maintaining a stable dividend for shareholders [2] Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is a top-rated analyst on TipRanks, with a background in mobile gaming and a focus on value opportunities in the energy sector [2]

Core Insights - The market is witnessing a potential multi-year outperformance cycle for low-valuation equities and small caps, which have lagged for about a decade [2] - Value stocks outperformed growth stocks by 269-724 basis points across all market caps in Q4 [3] - The concentration of large-cap technology stocks has increased significantly, with the top 12 AI-linked stocks adding approximately $15 trillion in market cap since the launch of ChatGPT in 2022, while their revenue growth was only $650 billion [5] Market Performance - In Q4, value stocks across various market caps showed significant outperformance compared to growth stocks, with the Russell Top 200 value stocks returning 3.81% versus 1.12% for growth, resulting in a 2.69% difference [4] - Small caps have shown signs of recovery, with earnings growth slightly exceeding that of larger companies for the first time in thirteen quarters [7] - The Deep Value Select strategy returned +5.09% in the last quarter, outperforming both the S&P 1500 Value Index and the S&P 600 Value Index [12] Capital Expenditure Trends - The five largest AI hyperscalers have seen their combined capital expenditures rise from $97 billion in 2020 to approximately $400 billion in 2025, with expectations of exceeding $600 billion by 2027 [6] - Technology sector capital expenditures as a percentage of U.S. GDP are projected to surpass the peak of 1.2% seen in 2000 [6] Company-Specific Insights - Nabors Industries improved its balance sheet significantly, reducing debt leverage from over 6x to near 2x, and is well-positioned to benefit from a potential increase in global rig demand [14][17] - JELD-WEN is undergoing a multi-year transformation to improve profitability, despite facing challenges in the housing market [19] - Conduent is in the midst of a multi-year transformation, focusing on streamlining operations and reducing debt, with a significant portion of its shares repurchased [20][24] Valuation Insights - Small caps are currently trading at a forward 1-year price-to-earnings multiple that is 30% lower than large caps, indicating a potential for valuation expansion [8] - The valuation spread between large-cap growth and small-cap value is near historical extremes, suggesting that small-cap value may be poised for outperformance [12]

Group 1 - Precision Drilling Corporation plans to release its 2025 fourth quarter and year-end results on February 11, 2026, after market close [1] - A conference call is scheduled for February 12, 2026, at 11:00 a.m. MT (1:00 p.m. ET) to discuss the results [1] - Participants can register for the conference call to receive a dial-in number and unique PIN for questions [2] Group 2 - Precision Drilling is a leading provider of safe and environmentally responsible services to the energy industry, with a fleet of Super Series drilling rigs [5] - The company has developed an industry-leading digital technology portfolio called Alpha™, which utilizes advanced automation software and analytics [5] - Precision's services are complemented by the EverGreen™ suite of environmental solutions, aimed at reducing the environmental impact of operations [5] Group 3 - Precision Drilling is headquartered in Calgary, Alberta, Canada, and is listed on the Toronto Stock Exchange under the symbol "PD" and on the New York Stock Exchange under "PDS" [6] - For further information, Precision provides contact details for its Vice President of Investor Relations [7]

Group 1 - Borr Drilling Limited (NYSE:BORR) completed a public offering of 21 million common shares priced at $4 each, raising a total of $84 million for rig purchases and corporate needs [1][2] - The company received a credit rating downgrade from S&P Global Ratings to 'B' with a stable outlook, which also included a downgrade of its senior secured notes to 'B+' due to the acquisition of five premium jack-up rigs for $360 million [2][3] - The $84 million from the public offering was used to fund the rig acquisition, supplemented by a $165 million issuance of senior secured notes at 10.375% interest due in 2030, with net debt reaching approximately $2 billion post-acquisition [3] Group 2 - Borr Drilling Limited operates a modern fleet of jack-up rigs for shallow-water exploration and production across offshore regions including the Americas, Europe, Africa, and Asia [4]